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The number of such employers now covering telemedicine has jumped from about 30% last year as companies see an opportunity to save money and give quicker access to medical care, according to the Mercer National Survey of Employer-Sponsored Health Plans. The analysis, which comes amid the annual employer fall open enrollment period, draws from a sample of more than 2,500 companies with at least 10 employees.

The telemedicine consultation between physician and patient costs around $40 compared to an in-person office visit that can cost $125. Though coverage varies widely, Mercer data shows 75% of employers that offer telemedicine share the cost of the visit with their workers through a co-pay of generally around $25.

Companies like American Well are growing rapidly, providing telemedicine services to health plans,... [+] employers and physicians. (American Well photo)

“When an employer offers telemedicine, it means a phone/video consultation with a provider is a covered service,” says Beth Umland, director of research for health and benefits at Mercer, a subsidiary of Marsh & McLennan Companies. ”If the plan member uses telemedicine before the deductible is met, he or she will likely pay the full cost.”

Most major insurance carriers including
Aetna,
Anthem and
UnitedHealth Group provide access to a telehealth vendor for traditional medical care. Increasingly, mental health services are also being offered by insurers and employers, telemedicine companies say.

It’s been a boon to companies like MDLive, American Well and Teladoc that offer the telehealth platform to insurers and employers.

“We are seeing MDLIVE’s health plan and employer customers fully embrace virtual care for both medical and behavioral health, as a means to help bend the health and wellness cost curve,” MDLIVE chief executive officer Randy Parker said. “The number of lives that can access our (MDLIVE) telehealth service through their health plan and employer benefit for 2017 has more than doubled to over 22 million for the 2017 plan year.”

Other telehealth vendors say, they, too are seeing unprecedented growth. “Five years ago, offering telehealth benefits was a novelty for payers and employers,” said Dr. Roy Schoenberg, CEO at American Well.

“The growth we’re seeing at Teladoc is on all fronts; an increase in employers, members and telehealth visits,” Teladoc CEO Jason Gorevic said. “Even more significant is the growth in the number of telehealth visits we deliver, as we work with employers to actively promote the service. With proven quality, lower costs, and accessibility, telemedicine is indeed headed to be the norm.”

I've written about health care for three decades, starting from my native Iowa where I covered the presidential campaign bus rides of Bill and Hillary Clinton through the

…

I've written about health care for three decades, starting from my native Iowa where I covered the presidential campaign bus rides of Bill and Hillary Clinton through the Hawkeye state talking health reform and the economy. I have covered the rise, fall and rise again of health reform, chronicling national trends as well as the influence of Barack and Michelle Obama from Chicago's South Side on changes to the U.S. health system from my base in Chicago. I am the author of the book, "Inside Obamacare." A regular on Forbes on Fox (2014-2018), you can see me on occasion nationally on Fox Business News. In Chicago, you can hear my health segments and business analysis on WBBM News Radio 780 and 105.9 FM. I've written for many media outlets, including the New York Times (2011-2013) and was healthcare reporter at the Chicago Tribune (1998-2011). Prior to that, I wrote for Modern Healthcare and several Iowa newspapers including the Des Moines Register. I'm active in education and teach in the University of Iowa School of Journalism MA in Strategic Communication program. I am passionate about health literacy when it comes to explaining the complexities of health care. A better understood health system may save someone some money or their life.